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Suggestions for evaluating ideas

Do not be afraid to share your ideas to receive feedback When articulating your business idea to others try to be as specific as you can and practice your idea presentation beforehand. It can be useful to state your idea in the following format: I am developing (define your product or service) to help (define your target customer group) to (state a problem that you are solving) with (state any proprietary technology or unique solution that you are using). After you performed initial research of your idea, make a real-world test of your product or service. Your financial institution or investor…

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Evaluation of your business idea

You can make money by building a business that marginally improves on existing products or services or clone an existing product and develop it for a new market.  Alternatively, if you are aiming for a high growth startup opportunity, your business idea not only has to solve a painful problem but also conquer a large market. The act of forming a business is not particularly difficult. However, planning for and developing a profitable, growing business is a complex, ongoing process. Adequate planning, attention to details, and realistic expectations are critical to your success. Start with evaluation of your business idea….

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Small Business Ideas

What problems do you notice? What do your friends or colleagues complain about? Ideas for startups often arise from a problem that needs to be solved. Business ideas usually come from your work experience, study or hobby to which you have been dedicated for a period of time. Your idea may involve filling an unmet need in the marketplace with a new product or service, providing an existing product in a new form, making improvement to a product available from competitors, or providing an existing product to a new customer group or other ways in which value can be added. …

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Benefits of the Idea Evaluator

Some benefits of the Idea Evaluator: Independent and cost effective evaluation your business idea. It includes analysis of competition, market, and likely financial requirements, and suggests next steps for your business planning Identifies aspects of your business idea that need improvement before you invest more time or money into building a business venture Helps you think through your business idea in a systematic way Within 10 business days you receive evaluation report that you can use for other business planning activities including preparation of a business plan or a loan application Read How It Works page for an overview of…

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Advise for your financial planning

When estimating costs you can divide them into two basic categories. Fixed costs are expenses that do not vary with your sales, such as rent, utilities, insurance and other operating expenses. Variable expenses such as raw materials to be sold and direct labor will depend on your projected revenue. To account for such costs you will have to develop a sales forecast. Once you estimated both components of your costs calculate your break-even point, the sales level at which your business has neither a profit nor a loss. The break-even analysis can also be used to evaluate a business expansion and…

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Business Plan Structure

There is no universally accepted format for a business plan, and thus there are many types of business plans. A good plan can include these elements. Executive Summary: a clear overview of your business venture Background: in case if you are already operating the business or if you are planning to buy an existing business.  In this section among other things you can include outline of any progress that the business has made to date and details of current ownership structure Products and services: features and benefits, current stage of development, proprietary technology and intellectual property. Also, rather than just…

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Why write a Business Plan

There are several benefits of preparing a business plan: You will address a number of questions and challenges concerning your business and thus will validate your business concept. Your business plan may uncover significant issues and risk factors making your business idea impractical. It is much less costly to identify significant issues during business planning stage than facing such problems when business becomes operational Developing a business plan helps you approach planning of your business in a systematic way. Be flexible throughout this process; while developing the business plan you may come across other concepts, markets, products or services. Additionally,…

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Start Own Business

It is difficult to start a business alone. Entrepreneurs should address a plethora of questions such as will customers buy my product, how much I can charge, how to effectively market my product or service and what business model to use. In today’s business world, where many new businesses fail within the first few years, it is very reasonable to search for every opportunity to increase your chances for success.  Planning4business offers a range of small business services (include URL) addressing your startup business needs. Outside business advisors can assist you in making decisions based on facts rather than intuitive…

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Buying Franchise

Established franchise offers various advantages over independent business including brand recognition, proven processes and products, training, centralized development of promotional programs, better bargaining power with suppliers and knowledge sharing among franchise owners. On the other hand, you will need to pay franchising fees and royalties, will have to adhere to a restricted sales territory and will likely experience less freedom in your pricing strategy. As with any opportunity, both advantages and disadvantages must be examined before a decision to invest into a franchise is made. Once you completed commercial due diligence of the franchise and you remain happy with selected…

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Purchasing Established Business

Purchasing an established business can reduce startup costs, help avoiding the long lead times involved in launching an enterprise and building a customer base. Established businesses also may have existing good will such as reputation that will reduce the risk of business failure. The decision to buy a business requires careful commercial evaluation including options for financing your purchase. As a buyer you need to recognize whether you have the right experience and management skills, whether the business is in a desirable location and how much you are willing to invest. You should also perform own due diligence as many…

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